The Vietnam Association of Small and Medium-sized Enterprises (VINASME) is planning to draft a roadmap to help local SMEs overcome difficulties and become more competitive on the threshold of Vietnam’s accession to the World Trade Organization.
During a conference entitled “Vietnam SMEs and WTO Accession” held in Hanoi by the VINASME and IBM with the participation of over 200 representatives from SMES nationwide and officials from ministries, industries, international organizations and embassies, enterprises raised concerns over challenges facing them when Vietnam opens its markets.
Stiff competition is likely between domestic SMEs and foreign enterprises in light of the fact that the competitiveness of local enterprises is limited by a lack of market information.
According to VINASME Vice President Ly Dinh Son, the association must radically develop its role as a legal protector of SMEs, a bridge between SMEs and State administrative agencies, and a provider of market information and consulting services.
Meanwhile, VINASME President said “WTO membership will create favorable conditions for Vietnamese SMEs to access broader markets and further foreign capital sources.”
SMEs would be able to take part in the process of international labor distribution and become satellites of global groups, he added.
Abraham Thomas, Vice President of IBM’s Global Mid-Market Business in Southeast Asia and South Asia said, domestic SMEs should uncover and concentrate on their core values in order to achieve sustainable growth while fully integrating into the global economy.
He stresses three essential factors for Vietnamese SMEs’ success including business specialization, skilled labor and prestigious brand names.
Currently, 97 per cent of the total 200,000 enterprises operating in Vietnam are SMEs. The number of SMEs in the country is expected to reach 500,000 by 2010.
Available statistics showed that of the SMEs, 17 per cent are operating in industry, 14 per cent in construction, 14 per cent in agriculture, and 55 per cent in services.
The SME sector was responsible for 26 per cent of the country’s Gross Domestic Product (GDP), 31 per cent of total industrial production and 78 per cent of total retail sales. They also created jobs for 26 per cent of the national labor force.
VNS
Vietnamese
